More incremental tightening today from Westpac, via the AFR:
Westpac is tightening credit policies for interest-only mortgages, an area where financial regulators have raised concerns about bank underwriting standards.
The country’s biggest lender to landlords last week told brokers of changes requiring new interest-only borrowers to be tested against their ability to make principal, and interest and fees payments over the “residual” period of the loan after the interest-only period had ended.
